View
224
Download
0
Category
Preview:
Citation preview
8/8/2019 Leveraging Remittances Payments
http://slidepdf.com/reader/full/leveraging-remittances-payments 1/12
WSBI and ESBG
Leveraging on remittances to expandaccess to finance
Norbert BielefeldCape Town – 9 April 2009
8/8/2019 Leveraging Remittances Payments
http://slidepdf.com/reader/full/leveraging-remittances-payments 2/12
ESBG - WSBI: a brief introduction
Americas:16 Members from
13 countries
Interest representation, business co-operation and technical assistancefor 103 Members in 89 countries focused on retail, regional andresponsible banking – Total assets 8,080 billion EUR – Total number of
accounts: 1,2 billion
Europe:34 Members from
30 countries
Asia-Pacific:22 Members from
17 countries
Africa:31 Members from29 countries
8/8/2019 Leveraging Remittances Payments
http://slidepdf.com/reader/full/leveraging-remittances-payments 3/12
Our vision for remittances
“The impact of remittances on economic development will increase if we promote closer relationships between
recipient institutions, migrants and sending institutions.At macro-economic level a migration from mostly cash-
based remittance services to account-to-account services will lead to a fuller inclusion of the huge remittance flows into the balance of payments of
recipient countries and the balance sheets of recipient financial institutions ”.
(WSBI Press release, 23 August 2006)
8/8/2019 Leveraging Remittances Payments
http://slidepdf.com/reader/full/leveraging-remittances-payments 4/12
There is more to remittances than a transaction!
Capitalising on the strength of links between country of origin andcountry of immigration:
UM= f (C,S,R, SC Imm, SC Emi, C Hh-Emi , InfComEmi )
Y(SC Imm)= C + S + R
Source: K. Maggard – Fed. of Atlanta – WP 2004-29
8/8/2019 Leveraging Remittances Payments
http://slidepdf.com/reader/full/leveraging-remittances-payments 5/12
Positioning in remittances
Objective: to increase bancarization, and balances held onaccounts
Focus: fostering capabilities to provide remittance services inthe account-to-account space
To be integrated by our Members into banking and financialproducts offerings
However – as cash plays an important role - the cash-to-cash
segment needs to be supported as well
8/8/2019 Leveraging Remittances Payments
http://slidepdf.com/reader/full/leveraging-remittances-payments 6/12
Examples
Spain: allow both customers and non-customers to access card-based transfer products over in particular an ATM network. Offerof personal, mortgage loans and micro credits in co-operationwith correspondents
United Kingdom: India Banking Service deployed in a specificnumber of branches with dedicated staff and marketing andsales material. Account-based money transfers to dedicatedpartner bank in India.
Brazil: internet money transfer service for migrant Braziliansbased on a host country issued credit card, as well as servicesthru physical tellers at partner banks
8/8/2019 Leveraging Remittances Payments
http://slidepdf.com/reader/full/leveraging-remittances-payments 7/12
The 3 Components of our Remittances Initiative
1- Commitment by WSBI Members to offer remittance services thatcomply (at minimum) with a common “Fair Value RemittancesValue Proposition”
2- WSBI’s support to Members to research and facilitate technologysolutions and co-operation agreements with solution providers
3- WSBI’s support to Members to act to remove identified legislative
and/or supervisory obstacles
8/8/2019 Leveraging Remittances Payments
http://slidepdf.com/reader/full/leveraging-remittances-payments 8/12
8/8/2019 Leveraging Remittances Payments
http://slidepdf.com/reader/full/leveraging-remittances-payments 9/12
Obstacles: first mile
Remittances: repeat transactions between known pairs oforiginators and beneficiaries
Informal systems can only be challenged by legislative andregulatory dispositions that are proportionate to this market
Disincentivise neither migrants nor originating institutions!
8/8/2019 Leveraging Remittances Payments
http://slidepdf.com/reader/full/leveraging-remittances-payments 10/12
Obstacles: intermediation
Standardisation: certainly, but: what governance, what pace
Payment infrastructures: certainty is a progress, but accessmust remain affordable
Consolidation of a 2-tier market
Tolerance of exclusivity arrangements
8/8/2019 Leveraging Remittances Payments
http://slidepdf.com/reader/full/leveraging-remittances-payments 11/12
Obstacles: last mile
Long term approach
Promote an “account holding friendly” environment and culture
Leverage reach: focus on trust and stability, yet ensure that allinstitutions can access payment networks and systems, andoffer core products
8/8/2019 Leveraging Remittances Payments
http://slidepdf.com/reader/full/leveraging-remittances-payments 12/12
To leverage remittances andexpand access to finance
Keep legislation proportionate
Allow migrants to use – rather than bypass – payment andbanking systems
Be vigilant on competition conditions
Remain technology neutral – yet continuously assess risks
Enhance governance and trust in financial system
Recommended